I haven't been trading hardly at all. Still consider the "system" to be completely manipulated.

However, it looks very promising to take a short equities position sometime between now and Inaguration.

It should be a "no brainer" that "they will want to tank the market to show Trump who really controls things around here.

--------------------------------------------------------
In terms of inflation: Government overspending is $1T on a $3T "budget". That is the same as money printing. Eventually it will show up.

Look at what could be cut from the budget, it adds to $2.5T over 10 years, or .25T yearly.

But the deficit is 4 times higher, $1T. So even with massive cuts, we can't get close to a balanced budget.

Please note that these are on Paul Ryan’s agenda, Wisconsin
Congressman and Speaker of the House. Some of this stuff I have never
heard of. I do believe that the government should support the arts and
humanities to some extent, but maybe not to the tune of 335 MILLION
bucks a year!

PAUL RYAN’S PROPOSED BUDGET CUTS

A List of Republican Budget Cuts

Notice S.S. and the military are NOT on this list .

These are all the programs that the new Republican House has proposed cutting.
Read to the end.

Monday, July 4, 2016

A friend had asked "how do you buy gold" and I did a
write-up for him, and for your benefit also. I have quite a bit of
experience.

This article is how I buy Precious Metals (PM)
The comments immediately below were originally written in 2013.

With the continued shenanigans in the EU and Cyprus, including the
threat of direct theft from insured bank accounts (bail ins), well just about
anything goes.

Any form of "electronic wealth" is suspect--easily diverted / stolen at a keystroke.

Owning hard assets in a potentially deflationary world (aka Pretcher /
MISH) could result in large losses, however with the whole world running
their printing presses to Kingdom come, the chance of deflation seems
no-brainer low.

Don’t be impressed with coins that come
with a high markup (aka premium) over spot like the American Eagle gold coins. On the Eagles sell price $1688 when spot is at $1614, that’s
a big premium.Also
watch out for
shipping and insurance costs, the good dealers I recommend are always
reasonable on this, unscrupulous ones may hit you with a big cost that
effectively raises your premiums. Oftentimes, orders over $10,000 or
$20,000 will get free shipping and insurance, but the shipping and
insurance is not really large anyway, you shouldn't pay more than $25 or
so

For starters, get $5,000 to $15,000 in pre-1964 silver dimes and
quarters, this is called JUNK SILVER and there is nothing junky about it.A quarter is roughly worth $6, a dime is 2/5
of that, around $2.50 for notional thinking.You need this for barter and making change in the coming New World Disorder. (NWDTM)

Junk silver is sold by “Face Dollar”, so a Face Dollar of Quarters would
be 4 quarters, or 10 dimes.The weight
of silver in dimes and quarters is exactly proportional to the USD face value
of the coin.10 dimes has exactly as
much silver as 4 quarters.

A
face dollar of either Half Dollars, quarters or dimes will be around
.715 ounces of Silver depending on the wear on the coins, although it
won't vary much.

Silver is heavier than you would think.You can’t put $20,000 in a backpack, grab your bug-out bag, and just hit
the road.For notional thinking, Gold
is about $25,000 per pound, so you could easily transport $100k of wealth.

Silver also comes in

Government minted coins (credible but higher markup)

“Rounds” which are round coin like objects but that aren’t minted by a
Government, these are sold at lower premium, but in a Mad Max world you might
have issues “proving” them to be real.

10 ounce bars, very cool, roughly $200 notional, stack well.You can also get 100 ounce and even 1000
ounce bars, but there is no benefit or need to own such large bars, simply ask yourself, what possible upside could they hold compared to the 10 ounce bars.

Many people are recommending a higher percentage of silver in your portfolio
than gold in dollar value. I do not agree with this. Their theory is because the long term ratio of gold to silver pricing is high, that silver
can appreciate more than gold.But
silver is also “poor man’s gold” and the poor man is “retail” and retail panics
when things get a little sketchy.Also
silver does not make it easy to transport serious wealth, whereas gold
does.

Gold: Your main choices are Government Minted coins and little 1 Ounce bars.

There are also large bars, but why get a large bar?For ego?There is no real benefit in getting large bars, and bars may need
a certification when you sell them. There have been a few instances
in which Tungsten was put into the middle of the Gold Bar. Tungsten is almost exactly the same density as gold, its just .02% heavier than gold, so they can hide it inside the gold.

The bars have a lower premium than the coins in general, as low as $16
over spot, although that low is rare, under $30 premium per ounce is normal.Also the bars have one
benefit that you may not think important at this time, but it may be very
important in the future.Gold in the
form of a “monetary instrument” has different reporting requirements when
transporting out of country.

Many experts say that you should diversify the country in which you hold
assets, indeed, why put all your eggs in one basket?For sure, all countries will competitively
devaluate their currency until some event causes them to stop printing money
and devaluating their currency, AND they will also try to prevent wealth from
leaving their country, AND the US will beat all other countries over the head
with financial and military might.

On the other hand it is also good to have a bunch of gold close to
you.Gold storage is a complex matter,
and not part of this treatise.

Some gold coins are .9999 pure gold.The only problem with this is that pure gold is soft and it may get
scratched in “use”, but how much use are you really going to do?How often are you going to have a $1600 coin
kicking around in your pocket.

2)The US Buffalo is 24 carat, or 99.99% pure gold, it will scratch more if
that is a concern, and premiums vary quite a bit.For a pure gold coin, I am going to go with a
Canadian maple, which sells with a lot less premium.

4)The “Krug”, or classic Krugerrand from South Africa.A great coin with some of the lowest premium
on well regarded gold coins.The Krug
is 22 carat,91.76% gold the rest is
copper, an alloy known as “Crown Gold”.It does contain a full ounce of Gold though.

5)There are others, the Austrian Philharmonic, and the Chinese Panda.I think the Panda looks silly and have no
interest in supporting China’s PM market.

Gold Bars

These are the lowest premium of all gold products ($16 over spot is the
best I have seen this decade, $30 premium is normal).Buy always the 1 Ounce bar, larger bars are for ego or seriously large portfolios (over
$10M).

Perth Mint,

Austrian
Credit Suisse,

Royal Canadian Mint, and the

Pamp Suisse are all you need to know.

Platinum and Palladium Coins:

Why not?Diversify
a bit, I bought platinum in November 2012 when one of my recommended dealers had a
good bull session with me and stated “I like being diversified into a metal
that is produced in a volatile country like South Africa”.Indeed, just days afterwards, a violent strike
hit a major producer in South Africa and the metal surged.The
Canadian
Maple Platinum has a reasonably low premium, it is a $50 “face value”
as a real Government coin, worth around $1700 in minted cost. A
premium around $60 per Maple is normal. For Palladium, the premium is
around $30 per Maple. The
PGM Platinum Group Metals are not "monetary metals" per se, so they may
not be as useable in a SHTF Armageddon scenario, however, I am assuming
that after Armageddon, that some normalcy will return in my lifetime.

Jewelry

Some have suggested that jewelry is a good investment, although the “minting”
value of jewelry often takes the price far beyond the “melt value”.I don’t buy into this jewelry thing, as
proving the purity could be quite troublesome in the future.There are methods of testing purity, which
involves putting acids on your gold, and there seems to be no need to cross
this bridge.There are also electronic testers, which are brutally
expensive, and just silly to even consider unless you were a large dealer.

There are companies selling copper bars, with insane large
markups over spot.Personally I think
this is a silly form of speculation, especially given the insane markups.The bursting of the Chinese housing bubble
will pressure copper for a long time to come.Housing is 40% of all copper use.At $3 per pound, compared to silver at $480 per pound, and gold at
$25,000 per pound, those PM’s are much more practical.Although I did scrap some 16 solar panels,
and turned the copper into 2 nice shiny gold coins!

Copper pennies---I don’t roll up my pennies, I put them into
vases that get really heavy.I did a
representative sort for kicks, the 1909 to 1982 pennies actually are worth 2.23
cents in melt value, the 1983 to current pennies are actually 95% zinc, 5%
copper and have a melt value of0.48
cents.

I got 819 grams of pennies in my sample

1983 and later was 615 grams, 198 pennies or 75.1%

1982 and earlier was 204 grams, 65 pennies or 24.9% and one
of these was a “wheaty” believe it or not.

At 3.11 grams per penny, my sample size was 263
pennies.1 Wheaty.

198*.48=95 cents

65*.223=145 cents

Total value of 263 pennies in 240 cents face value, sheesh!I don’t think sorting pennies is a real
business model, however, why not keep them?It cost more money to get rid of them in time and gas!

Confidentiality—

There are certain types of transactions that require the
PM dealer to report to the government in PM transactions.The reportable transactions are very
rare.Some dealers will report only the
essential reports, and other dealers will come right out and state that they
WILL be reporting your transaction almost all the time.Which do you prefer?You should read the dealers policy and
question them when you call in to buy.There will be tax consequences when you sell, if you ever sell.
Gold and silver are generally treated as a collectible with exceptions, and subject to a high 28% Capital Gains tax rate.

Taxes

--Got
to admit, the tax issues are complex and I have spent a few hours at
different times trying to get a handle on it. I saw this on a
retirement website, now people are holding PM's inside 401k and IRAs, I
have no idea the physical logistics of that.

There are exceptions . Certain bullion coins issued by the U.S.
(generally the American Eagle gold, silver, and platinum coins) and any
coins issued by any of the states are not collectibles. Also gold,
silver, platinum, or palladium bullion are not collectibles when the
metal equals or exceeds the minimum fineness required under a regulated
futures contract and is in the physical possession of a qualified
trustee.

Wednesday, March 2, 2016

Aloha, to one and all. I needed to re-invent myself and it took a few years and worked well.

Just saw this today, and it looked like a post. I would also recommend looking at silver, seems like all the PMs are taking their turns with a spike up, and then usually a slough off to shake out the weak hands that jumped in late in the spike. Same as always, inflict max pain on max participants.

Another Epiphany occurred to me yesterday. One reason that so many thinking people are extremely pissed off in USA? Because we need to spend 20% to30% of our entire efforts in researching, planning, and acting just to mitigate damages to ourselves from incredibly misguided government policy including corruption.

How much real wealth, and health, could we be creating if we didn't have to waste such time mitigating damages?

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